Survey: RMs Still Have Some Tunnel Vision

PwC said results are based on extensive interviews with senior representatives of major financial services institutions, including 14 leading international service organizations.

"What's encouraging about the survey results is that now we're seeing some fact-based support for many of the ideas and concepts that were discussed in the e-briefing," said Shyam Venkat, partner, financial risk management with PwC in New York.

For example, he said, "We had spoken about the attributes of world-class risk management culture" and the survey shows that many leading financial institutions have already embraced many attributes. But there is still room for improvement, he noted.

Mr. Venkat continued that "the notion of expanding the focus of risk management to both quantitative and unquantifiable risks is an area that companies are focusing on more and more."

Taking an enterprise-wide view of risks and looking at those risks on an aggregate basis across the company is an area that most respondents feel can be improved, he said.

This is largely because of the systems and data challenges they face with systems "that are not harmonized, leaving different representations of data across the company," Mr. Venkat explained.

With respect to governance, he said, there is room for improvement in terms of "really driving the risk management culture throughout the organization and making sure risk managers have both the authority and backing of the board."

A fair number of respondents surveyed have established senior level risk management responsibilities, "but at the same time there were a number of instances that level of responsibility didn't have direct visibility to the board," he said.

Making sure the board is "more in tune with the risk management aspects of the company is an area that requires some education," Mr. Venkat added.

The survey found that:

? Fifty percent of respondents have established a senior level position with firm-wide risk oversight responsibilities.

? Nearly 70 percent of respondents' institutions have begun new training and risk awareness programs.

? Seventy-five percent of respondents' organizations now formally articulate risk appetite at the group level.

?More than 50 percent have revamped policies for the authorization of risk-taking to ensure closer alignment with the organization's strategic objectives.

The survey found that regulators and investors will continue to demand higher standards of accountability for decisions made by financial institutions. Managers also are increasingly aware of the value that risk management can deliver to the organization.